Baird Remains Sidelined on Seagate Technology (STX) Following 1Q EPS Beat
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Baird maintained a Neutral rating and $37.00 price target on Seagate Technology (NASDAQ: STX) following the company's 1Q earnings report. Non-GAAP EPS was $0.99, above the guidance of $0.91 and above consensus of $0.89. Revenue was $2.797 billion, as preannounced by Seagate. For 2Q17, management expects sequentially flat revenue.
Analyst Tristan Gerra commented, "Reiterating our $37 price target and Neutral rating on STX shares, given Seagate's still-muted revenue outlook given lack of NAND exposure, secular declines in EB for client compute, and continued price per bit declines. While potential continued tightness in NAND flash in 2017 would be incrementally positive for HDDs, as it slows HDD secular share losses while helping ASPs, rate of HDD cannibalization could accelerate as 3D NAND becomes more pervasive in 2H17. 1H seasonality suggests a near-term EPS peak in the current quarter."
Shares of Seagate Technology closed at $34.32 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesRobert W Baird, Earnings
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